Dell Increases Profits, Cuts Workers

Just as computer company Dell has trumpeted an increase in sales and profits and a deal to sell its computer at Wal-Mart, it’s also announced plans to shed at least 7,000 jobs as it cuts its global workforce by 10%. Dell, which has been struggling for some time in the face of fierce competition, especially from Hewlett Packard, which has experienced strong growth in the market. However, it’s undergone a turnaround since founder Michael Dell returned to taking full charge of affairs earlier this year. Dell has improved its customer support and focused on emerging markets like Brazil, with remarkable success. The results have been a jump in first-quarter profits to $947m from $762m over the same period last year, and sales rising by about 1% to $14.6bn over the past three months. Dell employs around 78,000 people around the globe, with major operations in the U.S., Europe, and Asia. The level of cutbacks in each region will depend on current trading, and general business and legal considerations, and will take place over the next year. Announcing the layoffs, Michael Dell said, “While reductions in headcount are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers.” The staff reductions were announced after the close of the stock market, but Dell shares still rose 2% as analysts anticipated the company beating forecasts.